BTL investors to expand portfolios
The first-quarter survey asked 3,000 of MX BTL customers about the state of the landlord market. The results revealed 78 per cent of investors felt confident about their investments, with 91 per cent of landlords claiming their rent levels increased or stayed the same during 2005.
Andrew Moss, BTL product manager at MX, was pleased with the results and was looking forward to a prosperous 2006. He said: “This comprehensive study demonstrates the high level of confidence in the BTL market at the start of 2006 with over half the landlords surveyed viewing investment in bricks and mortar as a good way of preparing for their retirement.”
Moss went on to predict a further rise in people renting during 2006, and argued: “More young people see renting as a lifestyle choice while they search and save for their first property. In addition there are an increasing number of students who will be looking to rent.”
Paragon Mortgages expressed a similar upbeat outlook for BTL, with its findings for December 2005 indicating a healthy sector, particularly in the North. John Heron, managing director of Paragon, said: “Professional landlords buy in response to clearly identified demand. In many parts of the country, and particularly in East Anglia and the North, we’ve seen them purchasing larger properties over the past few months, from which they are enjoying a proportionate pick-up in rents. In the North, for example, yields have risen from 6.49 per cent to 6.62 per cent over the same period.”